EU to Impose €2 Tax on Low-Cost Imports, Impacting Temu and Shein

• The EU plans to introduce a €2 fee on small packages entering the bloc, mainly affecting low-cost retailers like Temu and Shein.
• The fee aims to cover costs associated with the 4.6 billion items imported annually, with some revenue going to the EU budget.
• Packages sent to warehouses will be taxed at €0.50.
• More than 90 percent of these packages come from China.
• The US has taken similar actions by removing the “de minimis” exemption for low-cost imports.
• The EU cites an increase in dangerous goods and unfair competition as reasons for the new fee.
• The fee is seen as compensation for customs costs, not a tax.
• Over 1 billion packages arrived in the Netherlands and Belgium last year.
• The proposal is supported by some EU officials, who believe it will encourage the use of warehouses.
• Temu and Shein have not commented on the proposal.

Source: ft.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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